Levy Increase Proposal 2011-16

At the November 2009 Delegate Forum Australian Pork Limited (APL) Delegates passed the following resolution:

“APL continue to pursue the strategy of a levy increase within the next two years and start the process of developing the business case for presentation to Delegates and Members‟.

In February 2010, the APL Board agreed to postpone this process due to the escalation of a number of important industry issues; one being the Productivity Commission (PC) inquiry into the Rural Research & Development Corporations and the other, the Pork CRC re-bid effort. With results of the successful re-bid now to hand together with the draft PC inquiry report it would seem pertinent to re-activate this strategy.

A full business rationale of the short and long term implications of a levy increase was presented to the May 2011 APL Delegates Forum held in Adelaide. This presentation also took into consideration a “no levy increase” scenario.  The Delegates were asked to vote on whether they support moves to increase the levy and thus moving to the next phase of full industry consultation around this proposition.  The meeting resoundingly supported the levy increase proposal and the next step for APL to move to full consultation around this objective.

In light of this, we are now moving into a full consultation process around the question of a levy increase for the Australian pork industry, and as an Australian pork producer, we ask you to be involved in that process.  You will soon be sent more detailed information around this consultation process and how you can get involved.

The APL Board recognises that there will never be a “right” time to go to the industry to seek a levy increase.  The process takes at least 12 months, in which time attitudes, confidence and unforeseen circumstances can always shift priorities.  Cost pressures on producers additionally make it hard to see the value of further cost increases.

On the other hand, the absence of an increase in the total “Marketing” and “R&D” levies since 1994 has meant that the effectiveness of your industry representative body to generate optimal value for producers is now at threat.

Importantly, future information will describe how you as an Australian pork producer can have your say and take part in the consultation and the subsequent voting that is required around this issue.

To view the Submission to the Minister for Agriculture, Fisheries and Forestry to Increase the Marketing Component of the Pig Slaughter Levy, click here.

For further information regarding the proposed levy increase, click here.

For roadshow dates and information, click here.

For further information please contact:

Andrew Spencer                                                               
CEO                                                                                
Ph: 02 6285 2200                                                             
Email: andrew.spencer@australianpork.com.au                    

Christine Quick
General Manager Finance & Administration
Ph: 02 6285 2200
Email: christine.quick@australianpork.com.au